Chapter 1. Introduction -- Chapter 2. Rationality of choices made by individual consumer -- Chapter 3. Rationality of choices made by groups of consumers -- Chapter 4. Rationality of choices made by individual producers -- Chapter 5. Rationality of choices made by groups of producers by...

This chapter has presented a survey of what industrial economists know about how markets clear. The evidence on price behavior is sufficiently inconsistent with the simple theories of market clearing that industrial economists should be led to explore other paradigms. The most useful extensions...

This chapter describes investment theory as the study of the individual behavior of households and economic organizations in the allocation of their resources to the available investment opportunities. For the purposes of investment theory, economic organizations are characterized as being...

This chapter develops the duality between cost and production functions. The chapter derives the regularity conditions that a cost function C must have and shows how a production function is constructed from a given cost function. The chapter considers the duality between a (direct) production...